UBS seals £8bn deal with Swiss government to cover Credit Suisse losses

Loss Protection Agreement

UBS has agreed a deal with the Swiss government to provide the bank with up to CHF9bn (£8bn) to protect it against losses accrued during its takeover of Credit Suisse.

The Loss Protection Agreement, announced by the Swiss government today (9 June), is the final step in UBS' takeover of Credit Suisse, which is set to complete as early as 12 June. The £8bn assistance will be triggered once UBS has covered the first CHF5bn (£4.4bn) of losses. The guarantee would cover the CHF44bn (£38.9bn) portfolio of Credit Suisse assets that UBS plans to wind down, equivalent to 3% of the combined group's total assets. UBS to complete Credit Suisse acquisition as early as 12 June "UBS will manage these assets in a prudent and diligent manner and intends to minimi...